e& revenue up 1.1% at Dh26.6 billion in H1 2023

UAE technology conglomerate e& reported consolidated revenue of Dh26.617 billion in the first half of 2023, a 1.1 per cent increase compared to the previous year.

Net profit for the period was down 3.2 per cent at Dh4.709 billion.

The group’s board of directors also declared the first interim dividend for the year at Dh0.40 per share.

On a quarterly basis, revenue was up 5 per cent year-on-year at Dh13.6 billion, while net profit after federal royalty was up 4 per cent at Dh2.5 billion, for the three months ended June.

Deal with PPF

The group also announced that it has signed a binding agreement with PPF Group to acquire a controlling stake (50 per cent + 1 share economic stake) in PPF Telecom Group’s assets in Bulgaria, Hungary, Serbia, and Slovakia at an upfront consideration of 2,150 million euros. PPF Telecom is the telecommunications division of PPF. The acquisition will mark e&’s expansion into Central and Eastern Europe.

The perimeter of the deal will comprise Yettel Bulgaria, Yettel Hungary, Yettel Serbia, and O2 Slovakia operations, with more than 10 million subscribers.

“e&'s performance during the first half of the year reinforces the resilience of our business model despite the challenging global macroeconomic environment. This was also the result of our teams' relentless efforts to remain committed to our vision and drive sustainable growth, making a positive change in the societies we serve while adding value to our shareholders,” said Jassem Mohamed Alzaabi, Chairman of e&.

“Today we are also delighted to announce e&'s strategic expansion into the European market. With this move, we join forces with PPF to build and expand our international footprint in the attractive Central and Eastern Europe region and beyond. It is the next step of our transformation into a global technology group, offering e& multiple avenues to roll-out its leading suite of B2B and B2C digital products in the CEE with significant synergies.”

Other key investments

During the quarter, the group successfully completed the formation of a JV that is owned 65 per cent by e& enterprise and 35 per cent by Bespin Global, offering public cloud managed and professional services in the Middle East, Turkey, Africa and Pakistan.

e& enterprise also signed a binding agreement to acquire a majority stake in Beehive Group Holdings Limited, the first regulated online marketplace for peer-to-peer lending to SMEs in the MENA region.

“Over the past six months, we have demonstrated a strong sense of resilience and adaptability. Our relentless focus on excellence and innovation has allowed us to thrive in the dynamic landscape of the telecommunications and technology sectors, maintaining our growth momentum,” said Hatem Dowidar, Group CEO.

“This positive performance has been driven by our core businesses and our new business verticals, which have seen an increase in demand domestically and internationally. This growth was also fuelled by harnessing the power of our technological prowess, leveraging our expertise to forge new paths, disrupt industries, and transform the way we do business on a global scale. Our commitment to pushing boundaries and embracing change has positioned us as a true trailblazer in the digital era.”

Soaring subscriber base

The group’s aggregate subscriber base climbed 3 per cent at 165 million at the end of the second quarter. It saw a net addition of 5 million subscribers as of June 30 over the year-ago period, mainly due to strong subscriber acquisition in Egypt, Pakistan, UAE, Chad, Burkina Faso, Afghanistan, Togo, and Benin. Quarter over quarter subscriber base increased by 1.2 million subscribers.

In the UAE, the active subscriber base increased by 5.1 per cent year over year to 13.9 million in the second quarter.

Total consolidated gross debt stood at Dh47.2 billion as of June 30, compared to Dh48 billion as of December 31, 2022, a decrease of Dh0.74 billion as a result of repayment of bank borrowings.